Health insurance plays a major role in all personal injury claims where the injury victim has health insurance. Individuals inexperienced with injury claims are often confused by the rights and responsibilities arising following an injury accident. An accident typically gives right to a lawsuit against the wrongdoer.
The wrongdoer is liable for the harm caused, but the health insurance carrier of the victim is responsible for paying for medical expenses incurred. The injury victim often wonders if there is a point in making a claim against the wrongdoer when there is health insurance to pay for all the medical expenses and when there is income coming from state disability insurance for lost days of work.
The point of personal injury law which includes all car accidents and most other injury claims is to make the person whole again. Compensation includes all economic loss and non-economic loss. These things include the cost of medical expenses regardless of who pays for them; the loss earning capacity and earnings; the pain, suffering, inconvenience, loss of dignity, and other non economic loss. Claimants suffering personal injury have different views depending on their specific experiences and ideas of fairness and justice. Some claimants are excited by the prospect of becoming millionaires following the injury accident. Others are upset because of fear of permanent injury and others feel they have been inconvenienced and have no interest in making a claim. In between there are many other varying ideas of what will result from the accident. The intent of the law is to put the person back where the person would have been if the accident had not occurred and this is what happens in many instances. Personal injury victims have not hit the lottery and have no hope of become rich. In fact the majority of serious injury accident victims are worst off. It is not uncommon for injury victim accidents to go bankruptcy following and injury accident. They have inadequate sources of income from disability insurance and medical bills can often get into the hundreds of thousands of dollars.
Health insurance is generally covered by other laws which often cause confusion and conflict. Health insurance generally requires reimbursement when the injury victim pursues an injury claim. Many injury victims resolving a personal injury claim by themselves are often surprised to get collection letters from their health insurance carriers after they have settled their claim. In fact many injury claimants settling a claim by themselves are shocked to learn that the generous settlement requires they give the entire amount back to their health insurance carrier. This error often committed by injury victims resolving a claim by themselves results because the health insurance medical expenses were not taken into account.
Often health insurance carriers refuse to pay for medical expenses incurred as a result of an accident, because of the risk of not getting reimbursement and to force the personal injury victim to pursue a claim. A seemingly simply personal injury claim is actually a complicated process involving many issues one of which is health insurance reimbursement. Serious injury victims, should always consult with a personal injury attorney. A personal injury attorney may seem expensive, but in reality are no more expensive than other attorneys and the benefit received by the consumer is off set by the net recovery to the claimant.